Cognizant Technology Solutions and a former senior-executive-turned-whistleblower are jointly urging a U.S. appeals court to revisit a lower court decision that would allow a high-profile visa fraud case to go to trial. The unusual move is aimed at avoiding what both sides describe as a long and expensive legal fight, and could open the door to a negotiated settlement instead.
The case dates back to 2023, when Jean-Claude Franchitti, then an assistant vice president at Cognizant, filed a complaint on behalf of the U.S. government. Franchitti alleged that the IT services major intentionally misused visa categories to bring employees into the United States at a lower cost than required under the H-1B program.
According to the filing, Cognizant relied on L-1 intracompany transfer visas and B-1 business visitor visas for employees who were performing roles normally filled by H-1B skilled workers. By doing so, the complaint claims, the company reduced its visa filing expenses and deprived the U.S. government of higher filing fees and payroll tax revenue associated with H-1B workers.
READ: FedEx founder Frederick W. Smith passes away at 80 (June 23, 2025)
In 2024, a New Jersey district court ruled that Franchitti’s claims were strong enough to proceed to a full trial. The court described the alleged conduct as a deliberate business strategy to sidestep immigration rules and limit payments to the government. Cognizant has reportedly pushed back, maintaining that it cannot be held liable for visa fees tied to applications it never filed.
Now, both sides are seeking an interlocutory appeal, a mid-case review by a higher court, to overturn that 2023 ruling, according to Mint.
The financial differences at the heart of the case are significant. Under current rules, the total cost of filing an H-1B petition can run into several thousand dollars for employers once mandatory USCIS fees are included, often substantially higher than the costs associated with L-1 petitions. By contrast, a B-1 business visa carries only a comparatively modest State Department application fee, typically under $200.
On the other hand, a very different picture has emerged at FedEx. After securing a federal delivery contract valued at more than $2 billion in late 2022, the logistics giant’s hiring trends began to shift.
Public records cited by The Dallas Express show that FedEx sharply ramped up its reliance on foreign workers under the H-1B visa program around the same period. At the same time, the company moved to cut hundreds of positions held by American workers across multiple locations in the U.S., highlighting a growing disconnect between federal contracting, domestic job losses, and increased use of temporary foreign labor.
FedEx has pushed back against that characterization. Responding to the report, the company said its hiring decisions are driven by business requirements and the skills needed for specific roles. A spokesperson told The Dallas Express that FedEx remains focused on developing its employees and building a workforce aligned with the company’s operational needs. “FedEx is committed to offering employees the opportunity to grow and advance in their careers. Doing so helps our team members thrive, and FedEx prosper. Our strategy is centered around recruiting a skilled workforce that meets our unique business needs and hiring the most qualified candidates,” as per the Spokesperson.
The episode has drawn sharper criticism in the current Trump administration climate, where many companies have grown cautious about hiring H-1B workers because of the steep $100,000 fee now attached to the program. Against that backdrop, FedEx CEO Rajesh Subramaniam, Indian American, has faced backlash from critics who accuse the company of laying off American workers while expanding its use of foreign labor.
The layoffs have continued into 2025. In November, FedEx said it would eliminate 856 roles at one of its warehouse facilities. Earlier in the year, the company cut 305 jobs in Fort Worth, and later announced another 131 layoffs across its Garland and Plano operations.